Feb. 28, 2024

This paid piece is sponsored by Xcel Energy.

The electric reliability of Xcel Energy stands at an impressive 99.9 percent — and the energy provider is making investments today to ensure it stays that way.

“We’ve been providing South Dakotans with reliable and resilient energy for more than 100 years,” said Steve Kolbeck, principal manager in South Dakota. “We now serve more than 100,000 customers in South Dakota, and we’re busy building a smarter and stronger energy grid for a more secure energy supply. This helps us reduce outages, improve response times and protect customers during extreme weather.”

And, of course, weather still gets in the way of electric service at times.

“When outages do occur, we’re able to call on our crews from around the region to restore power,” Kolbeck said. “We can also call on mutual aid partners from outside our service area to assist our crews in major outage events, and our crews help other energy providers when they need it.”

Xcel Energy’s strong storm response and restoration efforts were recognized with an Edison Electric Institute Emergency Recovery Award last year.   

Investing in a stronger grid

Xcel Energy has invested approximately $190 million in the power grid serving South Dakota over the past five years, primarily by boosting the capacity and reliability of the system through new and improved lines and substations. This includes the Great Plains substation on Sioux Falls’ west side, which the company brought online in 2023. Xcel Energy also constructed new substations near downtown Sioux Falls in 2016 and near Renner in 2017.

“Investments in infrastructure in Sioux Falls and the surrounding area will help us serve our customers reliably for many years to come,” Kolbeck said.

In the decade between 2013 and 2022, Xcel Energy tested more than 30,000 power poles in South Dakota, including a drone flyover of local infrastructure to evaluate its condition.

“This work helps us identify which poles need replacement to help strengthen the electric system and enhance reliability,” Kolbeck said. “This infrastructure helps us deliver safe, reliable, affordable and increasingly clean electricity to our customers’ homes and businesses.”

Earlier this month, Xcel Energy filed its Upper Midwest Energy Plan that advances the clean energy transition with a flexible, all-of-the-above energy mix strategy.

“Our plan calls for extending the use of our two carbon-free nuclear plants in Minnesota – which serve all customers throughout the Upper Midwest, including South Dakota – while adding more wind and solar energy, battery energy storage systems and always-available sources of electric generation capacity,” Kolbeck said.

“By improving how we deliver energy, we can keep customers’ bills as low as possible. Our customers’ average electric bills have been below the national average for decades. Our Upper Midwest Energy Plan continues to keep costs low, with an estimated average increase in customers’ electric rates of less than 1 percent per year — less than half of the expected national average increase in electricity prices.”

Smart meters offer customers more choices

The next step in this modernization includes new tools and technology such as smart meters that empower customers to manage their energy use better while improving reliability and helping the company restore power more quickly after an outage.

In January, Xcel Energy started installing smart meters at homes and businesses in Sioux Falls. It’s part of a multiyear project to bring customers cleaner, safer and more reliable energy through advanced grid technology while giving them more options to manage their electricity use.

“If you haven’t seen an installation crew yet, you will soon,” Kolbeck said. “We’re aiming to install the new devices for our more than 100,000 South Dakota customers this year and into 2025.”

Smart meters will give customers near real-time energy use data that they will be able to access through the company’s My Account app or via xcelenergy.com. Customers also will have access to programs and services that will help them better understand their energy usage and how to improve efficiency and find more savings. If you’re an Xcel Energy customer, you’ll start to receive notifications three months in advance of receiving a new meter.

Opportunities for customers

Learning more about Xcel Energy programs can help you be more efficient both with your energy use and your budget.

“We’re committed to doing all we can to keep costs low for our customers while delivering the safe, reliable energy they depend on, and we always encourage customers to take steps to save energy and money,” Kolbeck said. “We offer many programs and rebates that customers can use to make their homes and businesses more energy efficient.”

From 2018 to 2022, thousands of residential and business customers in South Dakota received more than $2.6 million in energy-efficiency rebates. Programs that benefit South Dakota customers include:

• Saver’s Switch: Receive savings on your electric bill in exchange for cutting back on air conditioning use during periods of peak summer demand.
• Heat pump water heater rebates: Help offset the initial cost of equipment and save money over time by using less energy.
• LED bulb discounts: LED bulbs save money and energy while lasting longer than other lightbulbs.
• Business lighting efficiency rebates: Help businesses save on LED fixtures and occupancy sensors.

Customers can visit XcelEnergy.com/Residential or XcelEnergy.com/Business to view other programs and rebates.